Can a bank collect on a second after the first has been foreclosed on

[llegaspi]

What is the name of your state? CA

Hello. Our home was foreclosed on last month. I have received a notice from the lender of the second that they will be persuing us for the money owed on the second. The money on the second was used to purchase the home. Can they still collect even though the money was used to acquire the security? Please help. Thank you.

[Some Random Guy]

Yes, you still owe them the money. Its just harder for them to collect since you lost the house and likely don't have a lot of other valuable assets.

[llegaspi]

Do you know if they can attach my wages? Thank you.

[suziekauff]

We have a first and second with the same company. My husband is being laid off and we cannot make the full payment. Do you have advise on : One should we stop paying the second only or should we stop on both the second and first? We know we will lose the house but what are the ramifications . thanks for any help

[FlyingRon]

Don't tack on to other people's threads. Start your own.

In California you'll lose the house either way. However, acquisition loans on personal residences are non-recourse. Other than taking the house and ruining your credit, that's about the worst the lenders can do.